BoAt Files for DRHP for Rs.2,000 Cr IPO

BoAt files for DRHP for Rs.2,000 crore IPO

by 5paisa Research Team Last Updated: Dec 13, 2022 - 08:46 pm 39.3k Views
Listen icon

BoAt brand of electronic accessories like ear phones and smart watches are quite popular in India. Now, Imagine Marketing Ltd, the company that the BoAt brand of earphones and smartwatches, has filed DRHP with SEBI for its proposed Rs.2,000 crore IPO. The IPO will be a mix of fresh issue of shares and an offer for sale.

BoAt is backed by some of the leading global PE investors like Fireside Ventures, Qualcomm Ventures and a Warburg Pincus Group affiliate, South Lake. The fresh issue of the IPO comprises of Rs.900 crore of fresh issue and an offer for sale of Rs.1,100 crore by the existing promoters and early investors.

Among the key shareholders offering shares in the OFS will include Rs.800 crore by South Lake Investment, an affiliate of Warburg Pincus, Rs.150 crore by Sameer Mehta and Rs.150 crore by Aman Gupta. Sameer Mehta and Aman Gupta are major shareholders in BoAt with holdings of 40% each. Aman Gupta is also well know for his presence at the Shark Tank show on TV.

While the OFS portion will be used to give exit to early shareholders, out of the new issue portion, Rs.700 crore will be utilized to repay debt. BoAt currently has total outstanding debt of Rs.764.18 crore. Since the retail business is a low margin business, reduction of debt would help substantially to boost profits of the company post the IPO fund raising.

The company, BoAt, was floated in 2013 and the first products under the BoAt brand were launched in the market in 2014. They focus on high-growth consumer categories such as audio and smartwatch. BoAt caters to a wide spectrum of price points and customer segments across a plethora of product categories.

Some of the major product offerings of BoAt include audio (wired and wireless headphones and earphones), Bluetooth speakers, home theatre systems and sound bars. One of their key offerings is wearables (smartwatches), gaming accessories, personal care appliances and mobile accessories.

Currently, as per the latest feet-on-street surveys, BoAt is ranked Number One in India in the wireless hearables category by value and volume and it is ranked second among smartwatch brands in India in terms of volume. For the fiscal year ended Mar-21, the company reported total revenues of Rs.1321 crore and net profits of Rs.86.5 crore.

This translates into net margins of 6.5% for the full fiscal. Axis Capital, BOFA Securities, Credit Suisse Securities and ICICI Securities will act as the book running lead managers (BRLM) to the issue.

Also Read:-

Upcoming IPOs in 2022

Upcoming IPOs in January 2022

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Market Outlook for 06 March 2024

Nifty started Tuesday’s day marginally negative on back of negative cues from the global markets. However, amidst stock specific momentum on both sides, the index recovered from the intraday low of 22270 and ended the day above 22350 with a marginal loss.

Stock of the Day – Bank of India

Bank of India Stock movement of Day

Top Private Banks in India 2024

India has a large banking sector with 21 private and 12 public sector banks. The top private banks in India are the reason behind India’s economic growth, making it one of the most rapidly emerging nations in the world. Moreover, with becoming the most populated country around the globe, India also has the largest economy.